Editor's Note: This is the 10th in an intermittent series by Repository writer Tim Botos looking into the Stark Metropolitan Housing Authority, accused in a federal audit of improperly spending or failing to document more $10.5 million of its public-housing dollars.

The five members of the Stark Metropolitan Housing Authority Board have a combined 83 years of service.

The group of men and women who oversee an annual budget of $32 million has remained largely intact through the years. Its members — none of whom are paid for their duties — typically get reappointed to new five-year terms on a regular basis.

Their collective experience, though, did not keep the agency from spending a total of $10.5 million in federal funds on ineligible projects or without proper documentation, according to a U.S. Department of Housing and Urban Development Inspector General report released on July 15. Board members approved all of those expenditures.

In one section, which dealt with an oil and gas lease they signed with Chesapeake Exploration, the report noted that: "Previous executive directors and the board of commissioners lacked a sufficient understanding of HUD's requirements regarding the encumbrance of program assets ... "

So, exactly who are these five board members and how are they appointed? State law lays out the process, based on population numbers in the area served by the authority.

In Stark's case: The mayor of Canton selects two members, while the board of county commissioners, judges of the common pleas court and the probate court judge pick one apiece. All terms are five years, staggered so that a seat becomes open every year.

BOARD MEMBERS

Frank Beane, a local attorney, is the most senior of the five. He's finishing his 27th year on the SMHA board. Not far behind is Daniel Fonte, an activist for retirees, whose service also dates to 1987, but included a one-year hiatus. By comparison, Linda Bell, in her 14th year, and Jeff McDaniels, a financial advisor, in his 17th year, are junior members.

The newest to the group is former Massillon housing director Marilyn Frazier, who joined in 2010. She replaced the ailing Cherrie Turner, who died in 2011. Prior to joining the board, Turner was a 32-year employee and former executive director of SMHA.

HUD officials have advised SMHA that it must essentially pay itself back — by funneling $10.5 million of its non-federal revenue into those federally-funded accounts. The board is expected to adopt a recovery plan when it meets again on Dec. 19.

In addition to the misspent $10.5 million, The Repository in the past three months has identified a host of other agency operational problems, which were outlined in an intermittent series of stories. A summary of those is included in an information box accompanying this story.

Page 2 of 3 - Most board members and the prior two executive directors, Amanda Fletcher and Michael Williams, have repeatedly declined comment to The Repository regarding the issues with HUD and other operational problems. Bell, the board president, said Fonte has and will continue to serve as the official spokesman for the body.

Fonte said prior audits had not identified any major issues. He said that's why members were surprised when notified early this year of problems within the agency.

"All I try to do is wrap my hands around everything ... if I knew all the ins and outs of (HUD regulations), then I'd be hired to work here, not serve on the board," he said.

New Executive Director Herman Hill — hired in February — is taking the agency through a multitude of functional changes. He's fired some employees, dumped contracts with long-time vendors, brought some work in-house and said he wants to create a team atmosphere.

Another change is a wholesale update of employee policies. The new rules, expected to be approved by the end of the year, will likely include several changes championed by Fonte.

One of those is a process where the board president, along with the executive director, will now be notified if an employee suspects employees of theft or other malfeasance.

"I firmly believe the board has to know," Fonte said.

During a recent board work session, Fonte said the agency's performance in fulfilling its mission of public and low-income housing has suffered in recent years. The blame he said rests with decisions to spend $10.5 million in the wrong places — all under the advice of former directors.

"We were spending it on Freed, the Metropolitan Centre, credit union ... if we'd spent it on rehabs, housing ... our (performance) scores would be through the roof," he said.

They declined comment to The Repository on whether Beane would remain.

The next one up is Bell, on Jan. 31, 2015. She's an appointee of the nine common pleas court judges. There are indications the judges are keeping a close eye on the SMHA board.

Presiding Judge Rosemarie Hall said all the judges have paid attention to stories that appeared in The Repository. She said that a month ago they called Bell in for a conference.

"We're very concerned," Hall said. "We expect a board member there to provide oversight ... to question ... ask legal counsel ... not rubber stamp. It seems like she got our message."

In the past, SMHA's executive director has recommended a candidate to the judges when it was time for their appointment, said Court Administrator Marc Warner. Former director Mike Williams suggested the reappointment of Bell in 2011, Warner added.

Page 3 of 3 - The Probate Court judge, currently Dixie Park, appoints the seat held by Fonte, which expires in 2016. The mayor of Canton, currently William Healy, appoints the seats held by Frazier and McDaniels, which expire in 2017 and 2018, respectively.

SMHA Review

Today's story is the 10th in a periodic series looking into the operations of the Stark Metropolitan Housing Authority. Here are summaries of the previous nine, published in September, October and November. For more on these stories, visit CantonRep.com and search for SMHA.

1. How and why officials paid $297,000 to build a house in Canton in an area surrounded by homes valued in the $50,000 range.

2. Why the agency spent $7 million to renovate the Metropolitan Centre, but now wants to sell it. SMHA leased space to the Knights of Columbus for a nominal $1 per year. And the marketing director of the Centre held a liquor license in his own name, enabling him to personally profit from liquor service at wedding receptions.

4. Hill, hired in February, is targeted in a recently completed internal probe and report that alleges wrongdoing during his two-year tenure as director of the Jackson (Mich.) Housing Commission. The SMHA board was unaware of the issues.

5. Angela Battle, former director of Freed Housing (an agency created by SMHA), admitted to the Repository that she stole money from clients by collecting cash rent from them. She'd resigned in 2009. And an SMHA manager sold her house to Freed.

6. The SMHA Credit Union and SMHA get tangled in a legal fight. SMHA tried, without success, to evict the Credit Union.

7. Battle, the former Freed Housing director, had placed close relatives in Freed-owned houses that were supposed to be for sale. The relatives often were thousands of dollars behind in rent and Freed paid utilities on at least some occasions.

8. An SMHA security guard was permitted to live rent-free for four years at the request of WIlliams, the former executive director. He was the only one who enjoyed such a privilege. The security guard was told this year he'd have to begin paying rent, but he was fired in October for driving a company vehicle on personal business.

9. Architect John Picard earned $1.8 million on SMHA projects in the past decade. A former SMHA employee himself, Picard employed a secretary who simultaneously worked as Williams' secretary at SMHA.